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SST implementation date among key decisions made by Cabinet

PUTRAJAYA: The Pakatan Hara­pan Cabinet has made a list of important decisions during its second meeting here.

They included the implementation date of Sales and Services Tax (SST), the payment of Hari Raya bonus for civil servants as well as distribution of financial aid.

It also agreed to allow the market to determine the price of RON97 while capping diesel and RON95 at current pump prices.

Prime Minister Tun Dr Mahathir Mohamad said that with the Goods and Services Tax (GST) to be zero-rated from tomorrow, SST will take its place effective Sept 1. However, the Cabinet has yet to determine the rate or percentage to be charged on consumers.

“We will have to study a suitable rate, but will look at the implication of levying it at 10%,” he said after chairing the Cabinet meeting yesterday.

The Government announced it will remove the GST and replace it with SST. GST zero-rated supply means the goods and services are not taxed, hence the taxable company does not need to collect any GST on sales.

The Prime Minister said with the zero-rated GST, consumers are expecting prices of goods to be cheaper, not just by 6%, but more in some cases as the tax imposed could come up to about 18% because of different tiers.

“In the end, when the consumer buys goods, he buys it at a higher price. I expect traders and retailers to sell food at much lower prices, at least certainly 6% less (than now),” he explained.

To bring some festive cheer to civil servants, bonus payments would be given to public officers of Grade 41 and below as well as pensioners, who will receive RM400 and RM200 respectively.

The Cabinet also announced that the financial aid to replace BR1M will now be known as Bantuan Saraan Hidup and will be paid out to those eligible on June 6.

Asked whether the payments of bonus and financial aid would be made on the same date, Dr Mahathir said that Finance Minister Lim Guan Eng would be giving the media a briefing on this.

The Cabinet also decided for diesel and RON95 to remain at current pump prices, whereas RON97 will be floated and its price will be determined by the market, said Dr Mahathir, adding that its mechanism would be announced soon. The existing fuel pump price is at RM2.20 per litre for RON95, RM2.47 for RON 97 and RM2.18 for Euro 2M diesel.

For those travelling during the Hari Raya festive period, toll charges will be reduced by 50% two days before Hari Raya, which is expected to fall on June 15.

The Cabinet also said the theme for this year’s Merdeka Day celebration will be “Sayangi Malaysiaku” (Love My Malaysia).

Source/ Reference: https://www.thestar.com.my/news/nation/2018/05/18/a-tax-holiday-for-malaysians-sst-to-come-into-effect-only-in-2-to-3-months/ (As at 31.5.2018)

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